?Which of the following is correct regarding the discount rate?
a. It is the interest rate that commercial banks charge their most creditworthy customers.
b. It is the interest rate that thrift institutions charge for home mortgages
c. It is the interest rate at which depository institutions can borrow from the Federal Reserve.
d. It is the interest rate set in the market for U.S. Treasury Bills.
e. It is the prime interest rate.
Ans: c. It is the interest rate at which depository institutions can borrow from the Federal Reserve.
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When a rent ceiling is imposed in a housing market, the opportunity cost of housing equals the
A) rent. B) market equilibrium rent that would prevail in the absence of a rent ceiling. C) value of the time and resources spent searching plus the rent. D) consumer surplus.
Explain how the input and output markets are connected
What will be an ideal response?
According to a recent survey, in 2016, the number of U.S. households that owned equities was about
A. 3 percent. B. 27 percent. C. 50 percent. D. 65 percent.
Bart operates a lemonade stand in front of his house. His father works at the Springfield Nuclear Power Plant. Which of the following is most likely to be true?
a. The long run is the same for the power plant as it is for the lemonade stand. b. The long run is longer for the power plant than it is for the lemonade stand. c. The long run is shorter for the power plant than it is for the lemonade stand. d. We cannot compare the long runs because these are different businesses. e. It's impossible for the power plant short run to be shorter than the lemonade stand's long run.